3 Ways To Save Money on a New Home
Saving for a down payment on a new home takes years. Many first-time homebuyers don’t realize all the extra expenses that come along with buying a house. No matter how small or large your budget, purchasing a home is the biggest investment you’ll likely make. It makes sense that you would want to save money on the price of buying a home whenever possible. Take a look at three smart ways you can save money on a home purchase.
1. Take advantage of a short-sale or foreclosure home.
Going after a short sale or foreclosure home can save you a lot of money. A short sale is a process in which a bank sells a house for less than the mortgage balance to allow a borrower to avoid foreclosure. Dealing with a bank can be a drawn-out process, but you’ll end up with a great house at a cheap price. You can also buy a foreclosed house from the bank at a bargain price. You should know, though, that a foreclosure may have missing fixtures, cosmetic damage, or structural issues that will require repair. You can apply the money saved on the selling price toward your renovation budget.
2. It pays to be the first or last resident.
There are two ways to buy a property in a new housing development. The first residents in a new development are subjected to years of construction noise, equipment, sparse landscaping, and few neighbors. Builders are understanding of these drawbacks and are willing to offer better deals for early home buyers. The other option is to wait out development and buy a new home in the final phase of construction. Builders are willing to offer deals to late home buyers to complete the development project.
Not all buyers know this, but builders do sell their display homes. There are several benefits of buying a display home. Buyers will enjoy a leaseback rental return while their future residence is still on display. Builders often sell the home and rent it back from the “landlord” during the development phase. Builders use model homes to showcase the craftsmanship their customers can experience. This means you can purchase a high-end home with premium fittings and fixtures that you normally couldn’t afford. Developments have more than one model home, which means the value of your property will remain competitive.
Dennis Family homes are designed with careful planning and expert builders to ensure they stand the test of time. From open floor plans and functional kitchen and living areas to luxury baths, this home builder offers contemporary homes perfect for your family’s lifestyle. At dennisfamily.com.au you can browse display homes based on square footage, size of the master bedroom, and the number of baths. The industry award-winning builder has a range of affordable home designs and house and land packages that make it easy to move into the home of your dreams.
3. Invest in a home inspection.
It’s home buyer 101 to never purchase a home without a home inspection. You need to hire a home inspector to do a walk-through and check the home for any issues, such as squeaky floors, mold, or leaks. It’s an inspector’s job to uncover any issues that you wouldn’t think to notice during a buyer walk-through. A home inspection could save you thousands in future home repairs. Depending on the extent of the issues, you can negotiate the asking price and request the seller to deduct the cost of repairs. Or, you can get the seller to make the necessary repairs before closing on the house.
Purchasing a short sale, foreclosure, or display home is a great way to save a lot of money on your new home purchase. No matter what type of home you pursue, invest in a home inspection before closing on your chosen home.